We received this inquiry from one of our Partners:

I have been working with a prospective client who has a special billing terms requirement.

They are a wholesaler and when invoicing their clients for a large stock order, give special payment terms of 3 payment amounts, due on different days. For instance a client will be billed on one invoice for $10,000, $3,333 due 30 days, $3,333 due 60 days and the balance due 90 days.

If you can think of any solution, including affordable customization, please let me know.

Here is an easy way to handle this requirement, making use of Adagio's ability to copy documents within a batch.

0. Create 4 new terms codes in AR, say "SPLITX", "SNET30", "SNET60", and "SNET90" due, 0, 30, 60 and 90 days.
-(this is only done once)-
then...

1. Invoice the big order in Order Entry, assigning the term "SPLITX" to the order.
2. Run dayend as usual.
3. In Receivables, edit the batch. (You might want to put the Terms code on the grid).
4. Make 3 copies of the original invoice.
5. Edit each invoice, changing the invoice number from "xxxx" to "xxxx-0", "xxxx-1", "xxxx-2" etc. and the terms to adjust the appropriate Due dates and amount. (Copy and paste can be used to easily copy the invoice number with the dash, and the calculator can be "popped up" in the invoice amount field to calculate the proportionate amount.)
6. Check that the batch total is still equal to the invoice credit note audit list. (You might want to use GridView or Crystal Reports for this.)
7. Post the batch.

I should note that this looks way more tedious than it is. I did it and it took me about 3 minutes for an invoice (and this was the first time). You could easily create a couple of Crystal reports that could be used as control reports to make sure that the amounts are all adjusted properly.

Also, this procedure adjusts the Due dates of the invoices, not the document date itself. Revenue will be recognized in the period of the sale. A slightly different procedure would have to be followed if you wanted different revenue recognition.

I have been hampered with no multiple due dates for years, especially for my clients who bill tuition or membership dues. Generally, their customers can choose a payment plan of either 1, 2 or 12 payments.

Your solution is not very good for these clients, for the following reasons:

a) The statement is darn ugly
b) Applying cash can be a nightmare when the amounts don't agree.
c) Sometimes there are multiple invoices which must be split (fees, building fund, books, etc), and this can get even uglier.
d) Here's the big one - customers decide to change their payment plans in the middle. Can you imagine all of the credit notes and rebilling?

We really need a customization or a third party product here.

Steve Schwartz

PS - right now my clients live with the fact that they can't get a good aging out of the system.

Hi Steve Schwartz,

You are describing clients with an "Installment Receivables" requirement more than this circumstance. I agree that this would not be appropriate for a client where every invoice involves a payment plan. However, if the client is looking for offering extended terms on a single large invoice as the exception, rather than the rule, then this procedure works.

• The statement displays as you would want (the revenue has been booked in the month on the invoice).
• Applying cash is faster in faster in Adagio, and shouldn't be more complicate than usual.
• The issue of multiple invoices or changes in payment plans doesn't occur for this problem (but down for Installment Receivables).
  

I agree there is an opportunity for a 3rd party developer here.

BTW - If you change the procedure here and change the invoice date, instead of the terms and due date, your clients would be closer to a reasonable work-around if we allowed them to exclude post dated invoices from the statement. Also, the most recent release of Receivables allows them to change due dates on invoices.